Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (USD $)
 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Cash flows from operating activities:    
Net loss $ (736,500) $ (303,200)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Provision for doubtful accounts receivable (1,000) 19,000
Depreciation and amortization 216,700 [1] 180,100 [1]
Stock-based compensation expense 685,400 11,000
Gains on extinguishment of debt (24,400) (8,500)
Changes in operating assets and liabilities:    
Cash - restricted   92,000
Accounts receivable (1,343,100) (284,600)
Costs in Excess of billings on uncompleted contracts (94,700) (249,400)
Inventory of supplies (16,600) 19,400
Prepaid expenses and other assets (58,700) (286,100)
Accounts payable 721,000 474,600
Accrued liabilities (105,400) 65,800
Billings in excess of revenue on uncompleted contracts 179,000 (81,400)
Deferred revenue 419,500  
Customer deposits 212,000  
Payroll taxes payable (28,200) (80,700)
Net cash provided by (used in) operating activities 25,000 (432,000)
Cash flows from investing activities:    
Purchase of property and equipment (2,305,000) (253,600)
Purchase of intangibles (53,900) (11,900)
Net cash used in investing activities (2,358,900) (265,500)
Cash flows from financing activities:    
Payments of notes payments and capital lease obligations (153,000) (88,600)
Payments of related party notes payable and accrued interest (10,000) 2,400
Proceeds from exercise of warrants 662,000  
Proceeds from the sale of common stock and warrants, net of expenses 776,000 779,000
Net cash provided by financing activities 1,275,000 692,800
Net increase (decrease) in cash (1,058,900) (4,700)
Cash at the beginning of period 2,419,100 [2] 70,400
Cash at the end of period 1,360,200 65,700
Supplemental disclosures of cash flow information:    
Cash paid for interest $ 74,400 $ 39,000
[1] Includes depreciation of property, equipment and leasehold improvement and amortization of intangibles.
[2] These numbers were derived from the audited financial statements for the year ended December 31, 2013.